• The main message today is one of good news
• Disinflation is on track and ahead of schedule compared to what we expected in November
• Not currently facing a situation in which monetary policy is being hit by big new shocks
• The risk from greater inflation persistence has become less pronounced
• Upside risk to inflation has continued to diminish
• For every rate cut, how much further to go becomes a closer call
• There should be scope for some further easing if outlook evolves as we expect

His opening remarks fit with the message from the statement decision and summary earlier. It’s obvious there is a slight dovish tilt but whether or not they can deliver on that, we shall see. Bailey is trying to say that they might be in a position to cut again in April at the earliest but it is subject to their assumptions and forecasts playing out.

The Q&A session:

• Need to see more evidence that we are going to get sustainable return to inflation target
• We have to be very focused on underlying inflation story
• Optimistic about inflation outlook
• We expect inflation to move down in the next release
• Falling inflation should feed into expectations; that should give me more confidence on the outlook
• Will not endorse 3.25% as terminal rate but market curve is reasonable

He’s not adding too much colour in responding to questions, also avoiding to comment about anything with regards to how US politics is affecting their policy setting and outlook.

The key takeaway here is that they are setting up an angle to cut rates sooner rather than later but won’t pre-commit to any date specifically. For now, he’s not refuting the potential for a move in April next. So, that is what markets are likely to stick with until something changes in their communication or on data developments.